SUMMARY: In an 8-K filed last Friday, UNIS disclosed FY:13 financials and reiterated its expectation of multiple supply contracts and clinical development agreements that would generate revenues during FY:14. While we found the timing of the filing (Friday before Labor Day) and the lack of a conference call a bit puzzling, management is scheduled to present at a conference in New York next week.
We continue to like UNIS' broad portfolio of customized drug delivery systems and recurring revenue model that could lead to profitability in relatively short order. However, this relies on UNIS commercializing its much-discussed (yet elusive) development pipeline, setting up FY:14 as a pivotal year for the company, in our view. We reiterate our BUY rating on the potential from this pipeline, but we lower our PT from $7.50 to $6 on increased uncertainty over timing.
UNS Price at posting:
62.0¢ Sentiment: Buy Disclosure: Held
